A scheme of arrangement under s 411 of the Corporations Act can validly bar creditors' claims against third parties, provided there is a sufficient nexus between the release and the relationship between the creditor and the scheme company. The decision in Re Buildmat, which held that a scheme could not release third party claims, was not followed. Where a scheme includes a third party release, creditors who have claims against the released third parties and those who do not must be placed in separate classes for voting purposes. The right of appeal under s 1321 from decisions of a claims assessment panel administering a scheme cannot be excluded.
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